If you’re making an estate plan and you have an extensive art collection, it’s very important to understand the true value of that collection. Things may have changed massively — for better or worse — since you bought those pieces.
In fact, an increasing value is often the goal, even for collectors who also enjoy the artistic style and decorative elements. When asked why they collected, around 70% of people said that they were interested in long-term financial gains and an expected return on investment.
It may be more than just art
It’s also worth noting that this same basic tactic applies to far more than just art. Any type of collection may have the potential to increase in value over time. This could include gun collections, sports memorabilia, collectibles from other types of entertainment, such as films and music, and much more.
Eyeing the potential gains does not have to decrease from your love of art, sports or anything else. What started your collection may well have been a passion for that area and a desire to engage in it in a new way. Over time, though, as your collection grew in size and diversity, you likely began to consider the financial implications. There are many art collections that are worth millions, and that is no small prize to pass down to the next generation. It must be done properly and with the true values in mind.
Is your plan ready?
Moving assets like this to your heirs can also be more complicated than strictly financial assets. Be sure you are well aware of the legal steps you must take to make your goals a reality.
